Italy moves to quell fears over solar incentives

Italy’s government rushed on Friday to quell concerns among banks and investors about the impact of new renewable energy rules on funding for the sector, pledging to reach an agreed solution on new solar incentives.

“The rapid definition of new incentives is my priority. Therefore I want first to meet the main banks and businesses involved,” Industry minister Paolo Romani said in a statement.

Pio Forte of UniCredit Leasing said on Friday that the banking world was concerned that the decree could impact funding for renewable energy.

Six associations representing solar operators have said they were concerned about the consequences for Italy’s booming solar industry and thousands of jobs. The sector had attracted investors from around the world including major makers of solar panels.

Under the new decree, Italy’s current generous solar power incentives, which were meant to run until 2013, will apply only to photovoltaic plants that connect to the grid by the end of May.